LOEWS CORPORATION REPORTS NET INCOME OF $369 MILLION FOR THE SECOND QUARTER OF 2024
Rhea-AI Summary
Loews (NYSE: L) reported net income of $369 million, or $1.67 per share, in Q2 2024, up from $360 million in Q2 2023. Excluding a prior period gain, net income increased 14% year-over-year, driven by CNA Financial and Boardwalk Pipelines. CNA's net income improved due to higher net investment income, while Boardwalk's results benefited from increased revenues. Book value per share, excluding AOCI, rose to $85.42 as of June 30, 2024. The company repurchased 2.4 million shares for $180 million in Q2 2024. Key highlights include:
- CNA's net income attributable to Loews increased 14% to $291 million
- Boardwalk's net income rose 23% to $70 million
- Loews Hotels' net income decreased to $35 million from $74 million
- Parent company had $3.1 billion in cash and investments and $1.8 billion in debt
Positive
- Net income increased 14% year-over-year to $369 million
- CNA Financial's net income attributable to Loews improved 14% to $291 million
- Boardwalk Pipelines' net income increased 23% to $70 million
- Book value per share, excluding AOCI, rose to $85.42 from $81.92 at year-end 2023
- CNA's net written premiums grew by 6% driven by strong retention and new business
- Boardwalk's EBITDA increased 13% to $240 million
Negative
- Loews Hotels' net income decreased to $35 million from $74 million in Q2 2023
- CNA's Property and Casualty combined ratio increased to 94.8% from 93.8% in Q2 2023
- Corporate & Other segment reported a net loss of $27 million
News Market Reaction – L
In the trading session that priced this news, L declined 1.54%, reflecting a mild negative market reaction.
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Second Quarter 2024 highlights:
Loews Corporation reported net income of
- CNA Financial Corporation's (NYSE: CNA) net income attributable to Loews improved year-over-year due to higher net investment income partially offset by higher catastrophe losses.
- Boardwalk Pipelines' results improved year-over-year mainly due to increased revenues from re-contracting at higher rates and recently completed growth projects.
- Book value per share, excluding AOCI, increased to
$85.42 $81.92 - As of June 30, 2024, the parent company had
$3.1 billion $1.8 billion - Loews Corporation repurchased 2.4 million shares of its common stock during the second quarter of 2024 for a total cost of
$180 million $14 million
CEO commentary:
"Loews had another good quarter driven by strong results at CNA and Boardwalk. CNA continued to experience profitable growth while Boardwalk capitalized on strong fundamentals in the natural gas pipeline business."
– James S. Tisch, President and CEO, Loews Corporation
Consolidated highlights: | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial | $ 291 | $ 255 | $ 601 | $ 523 |
Boardwalk Pipelines | 70 | 57 | 191 | 143 |
Loews Hotels & Co | 35 | 74 | 51 | 98 |
Corporate | (27) | (26) | (17) | (29) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
June 30, 2024 | December 31, 2023 | |||
Book value per share | $ 74.57 | $ 70.69 | ||
Book value per share excluding AOCI | 85.42 | 81.92 |
Three months ended June 30, 2024 compared to 2023
CNA:
- Net income attributable to Loews Corporation improved
14% to$291 million $255 million - Core income increased
6% to$326 million $308 million - Net investment income increased due to higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base and favorable returns from limited partnerships.
- Net written premiums grew by
6% driven by strong retention and new business. Net earned premiums grew by7% . - Property and Casualty's underwriting income decreased due to higher catastrophe losses.
- Property and Casualty's combined ratio was
94.8% compared to93.8% in the second quarter of 2023 partially due to a 0.4 point increase in catastrophe losses. Property and Casualty's underlying combined ratio was91.6% compared to91.1% in the second quarter of 2023. - Net income was also positively impacted by lower investment losses driven by lower impairments.
Boardwalk:
- Net income increased
23% to$70 million $57 million - EBITDA increased
13% to$240 million $213 million - Net income and EBITDA improved due to increased transportation revenues from higher re-contracting rates and recently completed growth projects, increased storage and parking and lending revenues, and contribution from the Bayou Ethane acquisition.
Loews Hotels:
- Net income of
$35 million $74 million - Adjusted EBITDA of
$98 million $100 million - Net income for 2023 included a gain of
$36 million - Excluding this gain, net income decreased due to lower equity income from joint ventures as occupancy and average daily rates decreased in
Orlando , partially offset by improved performance at city center hotels. - Net income was also impacted by higher depreciation and interest expense due to the opening of the Loews Arlington Hotel and Convention Center in the first quarter of 2024.
Corporate & Other:
- Net loss of
$27 million $26 million - The decrease in results is primarily due to lower investment income from parent company equity securities partially offset by higher income from short-term investments and fixed income securities.
Six months ended June 30, 2024 compared to 2023
Loews Corporation reported net income of
- CNA's net investment income increased due to higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base and favorable returns from limited partnerships and common stock.
- Property and Casualty's underwriting results were lower due to higher net catastrophe losses partially offset by favorable net prior year loss reserve development.
- Property and Casualty's combined ratio was
94.7% compared to93.9% . Property and Casualty's underlying combined ratio was91.4% compared to91.0% . - CNA's net written premiums increased
6% . - Corporate & Other results improved year-over-year driven by higher returns from parent company equity securities and short-term investments.
- All other segment drivers of results for the six months ended June 30, 2024 as compared to the comparable prior year period are consistent with the three-month period drivers discussed above.
Share Purchases:
- On June 30, 2024, there were 219.7 million shares of Loews common stock outstanding.
- During the three months ended June 30, 2024, Loews Corporation repurchased 2.4 million shares of its common stock for a total cost of
$180 million - Loews has repurchased an additional 0.2 million shares for
$14 million - Depending on market conditions, Loews may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market, in privately negotiated transactions or otherwise.
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures that are not in accordance with accounting principles generally accepted in
Earnings Remarks
For Loews Corporation
- Today, July 29, 2024, earnings remarks will be available on our website.
- Remarks will include commentary from Loews's president and chief executive officer and chief financial officer.
For CNA
- Today, July 29, 2024, earnings remarks will be available on the Investor Relations section of CNA's website at www.cna.com.
- Remarks will include commentary from CNA's chairman and chief executive officer and chief financial officer.
About Loews Corporation
Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit www.loews.com.
Forward-Looking Statements
Statements contained in this news release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Company's overall business and financial performance, can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this news release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Loews Corporation and Subsidiaries Selected Financial Information | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
CNA Financial (a) | $ 3,519 | $ 3,304 | $ 6,963 | $ 6,456 |
Boardwalk Pipelines | 488 | 365 | 1,005 | 762 |
Loews Hotels & Co (b) | 251 | 254 | 467 | 446 |
Corporate investment income, net | 9 | 11 | 63 | 53 |
Total | $ 4,267 | $ 3,934 | $ 8,498 | $ 7,717 |
Income (Loss) Before Income Tax: | ||||
CNA Financial (a) | $ 402 | $ 361 | $ 829 | $ 732 |
Boardwalk Pipelines | 94 | 76 | 256 | 192 |
Loews Hotels & Co (b) | 44 | 101 | 72 | 135 |
Corporate: | ||||
Investment income, net | 9 | 11 | 63 | 53 |
Other (c) | (42) | (41) | (84) | (85) |
Total | $ 507 | $ 508 | $ 1,136 | $ 1,027 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial (a) | $ 291 | $ 255 | $ 601 | $ 523 |
Boardwalk Pipelines | 70 | 57 | 191 | 143 |
Loews Hotels & Co (b) | 35 | 74 | 51 | 98 |
Corporate: | ||||
Investment income, net | 7 | 9 | 50 | 42 |
Other (c) | (34) | (35) | (67) | (71) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
(a) | The three months ended June 30, 2024 and 2023 include net investment losses of |
(b) | Includes a gain of |
(c) | Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging. |
Loews Corporation and Subsidiaries Consolidated Financial Review | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
Insurance premiums | $ 2,498 | $ 2,347 | $ 4,939 | $ 4,595 |
Net investment income | 639 | 592 | 1,308 | 1,161 |
Investment gains (losses) (a) | (10) | 14 | (32) | (21) |
Operating revenues and other | 1,140 | 981 | 2,283 | 1,982 |
Total | 4,267 | 3,934 | 8,498 | 7,717 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,882 | 1,779 | 3,689 | 3,432 |
Operating expenses and other | 1,878 | 1,647 | 3,673 | 3,258 |
Total | 3,760 | 3,426 | 7,362 | 6,690 |
Income before income tax | 507 | 508 | 1,136 | 1,027 |
Income tax expense | (112) | (120) | (256) | (235) |
Net income | 395 | 388 | 880 | 792 |
Amounts attributable to noncontrolling interests | (26) | (28) | (54) | (57) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
Net income per share attributable to Loews Corporation | $ 1.67 | $ 1.58 | $ 3.72 | $ 3.19 |
Weighted average number of shares | 221.60 | 227.97 | 222.18 | 230.78 |
(a) | Includes a gain of |
Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures:
CNA Financial Corporation
Core income is calculated by excluding from CNA's net income attributable to Loews Corporation the after-tax effects of investment gains (losses) and the effects of noncontrolling interests. The calculation of core income excludes investment gains (losses) because these are generally driven by economic factors that are not necessarily reflective of CNA's primary operations. The following table presents a reconciliation of CNA net income attributable to Loews Corporation to core income:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
CNA net income attributable to Loews Corporation | $ 291 | $ 255 | $ 601 | $ 523 |
Investment losses | 9 | 25 | 26 | 53 |
Noncontrolling interests | 26 | 28 | 54 | 57 |
Core income | $ 326 | $ 308 | $ 681 | $ 633 |
Boardwalk Pipelines
EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk net income attributable to Loews Corporation to its EBITDA:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Boardwalk net income attributable to Loews Corporation | $ 70 | $ 57 | $ 191 | $ 143 |
Interest, net | 38 | 35 | 77 | 72 |
Income tax expense | 24 | 19 | 65 | 49 |
Depreciation and amortization | 108 | 102 | 214 | 203 |
EBITDA | $ 240 | $ 213 | $ 547 | $ 467 |
Loews Hotels & Co
Adjusted EBITDA is calculated by excluding from Loews Hotels & Co's EBITDA, the noncontrolling interest share of EBITDA adjustments, state and local government development grants, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including Loews Hotels & Co's pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying Loews Hotels & Co's ownership percentage to the underlying equity method investment's components of EBITDA and excluding distributions in excess of basis.
The following table presents a reconciliation of Loews Hotels & Co net income attributable to Loews Corporation to its Adjusted EBITDA:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co net income attributable to Loews Corporation | $ 35 | $ 74 | $ 51 | $ 98 |
Interest, net | 12 | (1) | 17 | 4 |
Income tax expense | 9 | 27 | 21 | 37 |
Depreciation and amortization | 24 | 17 | 45 | 33 |
EBITDA | 80 | 117 | 134 | 172 |
Noncontrolling interest share of EBITDA adjustments | (2) | (4) | ||
Gain on asset acquisition | (46) | (46) | ||
Asset impairments | 9 | 9 | ||
Equity investment adjustments: | ||||
Loews Hotels & Co's equity method income | (32) | (41) | (59) | (72) |
Pro rata Adjusted EBITDA of equity method investments | 50 | 62 | 106 | 124 |
Consolidation adjustments | 2 | (1) | 1 | (2) |
Adjusted EBITDA | $ 98 | $ 100 | $ 178 | $ 185 |
The following table presents a reconciliation of Loews Hotels & Co's equity method income to the Pro rata Adjusted EBITDA of its equity method investments:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co's equity method income | $ 32 | $ 41 | $ 59 | $ 72 |
Pro rata share of equity method investments: | ||||
Interest, net | 10 | 12 | 20 | 23 |
Income tax expense | ||||
Depreciation and amortization | 12 | 12 | 24 | 25 |
Distributions in excess of basis | (4) | (3) | 3 | 3 |
Consolidation adjustments | 1 | |||
Pro rata Adjusted EBITDA of equity method investments | $ 50 | $ 62 | $ 106 | $ 124 |
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SOURCE Loews Corporation